My favorite A Paper lender went down today. New Century Mortgage a/k/a Royal Bank of Canada. When RBC was taken over in the States by New Century, I warned my rep there could be trouble. Now that time has come.

     If you are the model borrower and your loan is being processed by the perfect lender, beware. Your lender can close their doors at any moment and will not fund your loan. Today, I heard that people were at a closing to buy a 1.5 million dollar apartment in NYC. Everybody left the closing room with/without keys and their stuff on a truck. I guess if they can afford a 1.5 million dollar coop, they will be staying at the Ritz tonight. Others might not be so luck.

     If your mortgage is currently with Chase or HSBC or one of the other big boys, than no fears. If you are a sub prime borrower or your lender is affiliated with a sub prime lender please please check on your loan. Get ready to make other alternative or apply somewhere else just in case.

Yes, this can happen to you!

-Dale Siegel